Business Life Insurance
Life insurance can be used in a business setting, either to protect a business or to provide employees with valuable benefits.
Protect the business
In the event that an owner or vital employee departs, life insurance can keep a business running. Here are two ways to accomplish that:
Key man life insurance—The business holds a life insurance policy on one or more vital employees. Proceeds enable the business to stay afloat and find a replacement.
Buy-sell agreements—The death of an owner or partner can dissolve a business and leave only a highly-illiquid inheritance for his or her heirs. Buy-sell life insurance can circumvent both these problems.
Benefit employees
You can use life insurance to reward/retain either a few hand-picked employees or all full-time employees.
Group life insurance—Cost-effectively provide life insurance coverage as an employee benefit for all full-time employees. This is the most common use of term life insurance in a business setting.
Split-dollar arrangements—The employee and employer share the expense and proceeds of a life insurance policy.
Deferred compensation plans—Start a life insurance policy that will later fund an employee’s retirement.
To purchase business life insurance, compare life insuranec quotes, or have a life insurance advisor walk you through business life insurance options, call 1-800-823-4852 today.
